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Energy Efficiency and Integrated Resource Planning at SMUD APPA Action Plan – EE and Planning

Energy Efficiency and Integrated Resource Planning at SMUD APPA Action Plan – EE and Planning. May 8, 2008 Jim Tracy, CFO Jim Parks, EECR&D Manager Sacramento Municipal Utility District. LEEDERS Initiative.

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Energy Efficiency and Integrated Resource Planning at SMUD APPA Action Plan – EE and Planning

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  1. Energy Efficiency and Integrated Resource Planning at SMUDAPPA Action Plan – EE and Planning May 8, 2008 Jim Tracy, CFO Jim Parks, EECR&D Manager Sacramento Municipal Utility District

  2. LEEDERS Initiative • The LEEDERS initiative was started at the request of SMUD’s General Manager (October 2005). • Direction was to enhance SMUD’s leadership in the areas of energy efficiency and environmental stewardship. LEEDERS Core Mission To propose a new long-term strategy for the aggressive integration of demand-side opportunities in district resource investment and operations.

  3. Goals of LEEDERS • SMUD demonstrates energy and environmental leadership by example. • The highest levels of cost-effective energy efficiency are achieved along the entire fuel cycle. • Demand side measures are compared on a comparable basis to supply side options in the resource planning process. • Price signals are set to optimize efficiency and resource utilization. • Enhance energy efficiency offerings. • Engage the community.

  4. Goal 3 Resource planning process is more transparent and results in balanced portfolio decisions where demand side measures are compared on a comparable basis to supply side options. Relevant Outcomes • Reliability • Price Stability/Competitiveness • Environmental Stewardship

  5. Goal 3 Suggested Actions • Modify internal process to make it more transparent and involve internal stakeholders. • Propose that Key Value SD-9(e) be modified to more closely reflect wording of SB 1037 that states: • Each local publicly owned electric utility, in procuring energy, shall first acquire all available energy efficiency and demand reduction resources that are cost effective, reliable, and feasible.

  6. Goal 3 Suggested Actions • Include in resource comparisons/decisions an explicit proxy for the financial risk of potential future regulation (control) on mercury and greenhouse gas emissions.

  7. Relevant Legislation • SB1037 – Loading order • AB2021 – Establishes minimum EE goals • SB1 – Sets aggressive PV goals • AB32 – 1990 level GHG by 2020 • Governor’s Executive Order – 80% GHG reduction by 2050

  8. What Has Happened • Formed an IRP Steering Committee and working group with representation across the District • Revised District Strategic Directive 9 to read: • First acquire cost-effective, reliable and feasible energy efficiency and demand reduction resources. Set a goal of reducing energy consumption by 15% by 2018. • Evaluation of supply and demand side resources and integrated portfolios considers a range of independent forecasts for GHG mitigation costs • $10 to $30 per ton in shorter-term • $30 to $90 per ton in the longer-term

  9. What Has Happened • Major expansion of energy efficiency goals • Issued RFP for installation of advanced metering infrastructure • SMUD Board is reviewing options for time-dependant and critical peak rates • Evaluating demand response programs to reduce peak load • Major expansion of customer outreach efforts

  10. SMUD’s Energy Efficiency Goals • SMUD’s board of directors adopted aggressive energy efficiency goals – 15% over ten years • The highest utility energy efficiency goals in California

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